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The global packaging manufacturer and property developer attributed its robust financial performance to improved results in its property division even as its traditional packaging business experienced a dip in the fourth quarter ended July 31 (Q4 FY2023).
Revenue for FY2023 saw a 2.3% increase to RM4.08 billion compared with RM3.99 billion the previous year, it said in a filing with Bursa Malaysia today.
The company reported an elevated operating profit of RM589.6 million, surpassing the RM561 million recorded in FY2022.
Although net profit for Q4 FY2023 fell 8.1% to RM114.89 million from RM124.98 million a year ago, the board proposed a final dividend of five sen per share for FY2023.
It will be disbursed on Jan 26, 2024, pending approval by shareholders during the upcoming annual general meeting.
Meanwhile, quarterly revenue stood at RM1.07 billion, down 3.6% compared with RM1.11 billion a year ago. Earnings per share dropped to 7.41 sen from 8.06 sen in Q4 FY2022.
The company said its weaker Q4 performance was due to lower packaging revenue of RM619.7 million from RM740.8 million in Q4 FY2022, on the back of an overall softening of market demand across all product segments.
On the flip side, the increase in property revenue during Q4 FY2023 rose 21.9% to RM451.8 million from RM370.5 million the previous year, driven by elevated progress billing from ongoing projects in Bandar Jasin, Melaka; Kundang, Selangor; and Tasek Gelugor in Penang.
Focusing on prospects for FY2024, it noted ongoing operational difficulties in its packaging division, amid subdued global demand.
Factors such as increasing core inflation rates, rising interest rates, and elevated energy expenses, resulting in heightened production costs also contributed to its challenges.
“The division is committed to improving production efficiency as well as managing its operational costs and product wastage,” it said.
“The packaging division has also embarked on adoption of solar photovoltaic projects to mitigate the rising energy cost and to reduce carbon footprint through sustainable energy generation and consumption,” it added.
Scientex will also introduce new phases of affordable housing in its Peninsular Malaysia developments to cater to strong demand.
“The division will continue to source and acquire competitively-priced landbanks and to properly manage the overall development costs,” it added.
At the close, Scientex Bhd’s share price was unchanged at RM3.68, giving the company a market capitalisation of RM5.71 billion.
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